Be extra wary online
The Internet has enormously speeded up the circulation of information and increased the opportunities for contacting people. Among other things it has increased the scope for advertising, proposing and making investments (via websites or e-mail).
However, it has also increased the possibility of illicit activities. You should therefore be even more careful and cautious than usual. In particular, you should:
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check that the person proposing the investment is clearly identifiable;
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check that the addresses provided (registered office, telephone and fax numbers, etc.) actually correspond to those of the company, preferably using telephone directory services and the registers of authorized intermediaries to be found on this website;
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always check with the competent supervisory authority that the company is duly
authorized
. The existence on a site of references to the fact that the company is supervised by a public authority or of links to the sites of
supervisory authorities does not mean that they assume any responsibility or guarantee the proposals in any way;
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download, print and read carefully the documentation available on the site to verify that the proposal is suited to your needs.
Websites and e-mail are distance communication techniques governed by Articles 71-76 of Consob Regulation 11522/1998. Moreover, if you are contacted by e-mail at the initiative of an intermediary, the message must have been sent by a financial salesman (see Consob Communication No. 99052838 of 7 July 1999)
Remember the international nature of the Internet
By its nature the Internet permits contacts and business at an international level. The first thing you should do is therefore to identify the country whose law applies to a transaction proposed or concluded over the Internet and whether it is supervised by a public authority. The addresses and websites of the regulatory authorities of the main countries
are available on the website of IOSCO, the International Organization of Securities Commissions (www.iosco.org).
Consob supervises financial activities carried out over the Internet that are aimed at persons resident in Italy.
E-mails also fall within the scope of Consob's authority if the persons they are sent to are resident in Italy.
As regards websites, Consob has established some criteria for determining whether an offering is to be considered as aimed at persons resident in Italy (see Consob Communication No. 99052838 of 7 July 1999).
If you come across initiatives on the Internet that do not appear to be in line with the principles set out above, we should be grateful if you would report them to Consob.
Take information you find on the Internet with a pinch of salt
The Internet allows you to find and exchange information and tips on markets, financial instruments and investment opportunities on companies' websites, on message boards, in online newsletters and in chat rooms.
In many cases the information and tips are anonymous or in any case difficult to check.
You should therefore proceed with great caution and look for confirmation of what you learn in this way from other sources of an official, or at least not anonymous, nature. Here again we should be grateful if you would report any suspected irregularities to Consob.
